Activity-based costing for a service company OBJ. 6 Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs:

Activity Activity Rate Room and meals $240 per day Radiology $215 per image Pharmacy $ 50 per physician order Chemistry lab $ 80 per test Operating room $1,000 per operating room hour The activity usage information associated with the two patients is as follows:
Patient Putin Patient Umit Number of days 6 days 4 days Number of images 4 images 3 images Number of physician orders 6 orders 2 orders Number of tests 5 tests 4 tests Number of operating room hours 8 hours 4 hours

a. Determine the activity cost associated with each patient.

b. Why is the total activity cost different for the two patients?